WallStSmart

GXO Logistics Inc (GXO)vsUnited Parcel Service Inc (UPS)

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Smart Verdict

WallStSmart Research — data-driven comparison

United Parcel Service Inc generates 554% more annual revenue ($88.32B vs $13.50B). UPS leads profitability with a 5.9% profit margin vs 1.0%. GXO appears more attractively valued with a PEG of 1.35. GXO earns a higher WallStSmart Score of 53/100 (C-).

GXO

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.36

UPS

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 6.5Value: 6.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GXO.

UPSUndervalued (+15.6%)

Margin of Safety

+15.6%

Fair Value

$142.22

Current Price

$107.24

$34.98 discount

UndervaluedFair: $142.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

UPS4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.3%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$92.51B9/10

Large-cap with strong market position

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

Areas to Watch

GXO4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
44.4x2/10

Premium valuation, high expectations priced in

UPS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.724/10

Expensive relative to growth rate

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.823/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : GXO

The strongest argument for GXO centers on Price/Book. Revenue growth of 10.8% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : UPS

The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio.

Bear Case : GXO

The primary concerns for GXO are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.4x leaves little room for execution misses. Debt-to-equity of 2.01 is elevated, increasing financial risk.

Bear Case : UPS

The primary concerns for UPS are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.82 is elevated, increasing financial risk.

Key Dynamics to Monitor

GXO carries more volatility with a beta of 1.62 — expect wider price swings.

GXO is growing revenue faster at 10.8% — sustainability is the question.

UPS generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor INTEGRATED FREIGHT & LOGISTICS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GXO scores higher overall (53/100 vs 49/100) and 10.8% revenue growth. UPS offers better value entry with a 15.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

GXO Logistics Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

GXO Logistics Inc (GXO) is a leading provider of contract logistics services, specializing in supply chain management and tailored logistics solutions for sectors such as e-commerce, retail, and consumer goods. The company harnesses an extensive global network and innovative technologies to optimize operational efficiency and scalability for its clients, while maintaining a strong commitment to sustainability. With the rising need for sophisticated warehousing and fulfillment capabilities, GXO is well-positioned to address market challenges, guided by an experienced management team and strategic partnerships that support sustainable long-term growth and enhance shareholder value.

United Parcel Service Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907.

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